Tennessee House Bill HB0019

Tennessee 2025-2026 Regular Session

• Introduced: 12/2/24
• Refer: 1/16/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 27 and Title 56, Chapter 7, Part 6, relative to covered persons insured under state healthcare plans.

Summary

HB0019 creates the “Tennessee State Healthcare Cost Savings Incentive Program” for people enrolled in state healthcare plans. The bill directs the state’s committees and the Department of Finance and Administration to contract with a qualified third-party vendor to build and run an online, consumer-friendly shopping platform that shows price and quality information for healthcare services and providers, including average county-level amounts paid. Enrollees would be able to compare options, receive counseling, and choose lower-cost, high-quality care. The bill also establishes a shared-savings incentive: if an enrollee selects a cost-effective service or provider, the program must calculate the savings to both the enrollee and the state and pay part of that savings back to the enrollee. The payment could go into a qualified savings or health benefits account or be paid directly to the enrollee. The program must begin by January 1, 2026, with annual reporting due each March 15 on participation and state savings.

Impact

HB0019 would amend Tennessee Code Annotated Title 56, Chapter 7, Part 6, and make related conforming changes to existing incentive provisions so the new program is added alongside current healthcare plan incentives. It also affects Title 8, Chapter 27 by tying the program to the state employee and group insurance plans administered through those provisions. The Department of Finance and Administration would gain contracting and rulemaking responsibilities, and state healthcare plans issued, renewed, or amended on or after January 1, 2026, would be subject to the new requirements.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be framed positively as a cost-saving, consumer-choice initiative. Its stated purpose is to encourage competition, improve transparency, and reduce costs for both the state and enrollees. No contrary sentiment is documented in the supplied context.

Contention

The main policy questions raised by the bill are operational rather than ideological: whether a third-party vendor can accurately provide price and quality comparisons, how the shared-savings methodology will be designed, and whether the program will truly maximize savings without disrupting access to care. Another possible point of concern is the use of out-of-network services if they meet the program’s cost-effective criteria, which could raise questions about network management and plan administration. No specific opponents or supporters are identified in the provided discussion materials.